WASHINGTON — Despite cynicism and stories to the opposite, the American Dream is alive and properly, particularly for millennials. And their prime goal for attaining the American Dream? Homeownership.
But a current Bank of the West study has discovered staggering variety of millennials (these ages 21 to 34) are risking their retirement funds to make that down cost on a white picket fence.
“Millennials are so eager to become homeowners that some may be inadvertently cutting off their nose to spite their face,” Ryan Bailey, head of the Retail Banking Group at Bank of the West, mentioned within the report.
“The fact that nearly one in three millennials who already own their homes have dipped into their retirement nest eggs to finance their down payment is alarming. With careful financial planning, millennials can have it all – the dream home today, without compromising their retirement security tomorrow.”
The study discovered that millennials’ rush to personal has led to some regrets.
According to the study, some 68 p.c have expressed purchaser’s regret. Forty-four p.c aren’t proud of the area itself, really feel like they’re caught in a single place, found injury to the home or realized too late that the area didn’t work for them. Another 41 p.c really feel like they’ve stretched themselves too skinny financially.
“A white picket fence can certainly be a smart investment. To avoid buyer’s remorse, millennials should cover their bases and kick the proverbial tires — reflecting on their physical and financial wishes for a home before they sign on the dotted line,” Bailey mentioned.
Millennials additionally seem to be hesitant when it comes to investing their cash.
A whopping 66 p.c say they really feel safer preserving their cash out of the inventory market and 42 p.c steering away from actual property.
The study cites the monetary disaster because the prime driver for this, with 65 p.c telling Bank of the West that the disaster has made them extra conservative buyers.
“Millennials have been stuffing their savings under the mattress instead of putting their income to work through strategic investments,” Bailey mentioned.
“While this may seem safe, they are putting their goals at risk by keeping cash on hand. While they are young, millennials have time on their side and could be missing an opportunity to grow their savings over a lifetime.”
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